Illustration of Budget report | Net deficit much lower than previous two years

Government Ends FY2023-2024 with Surprising Net Deficit Figures

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The Coalition Government has concluded the 2023-2024 financial year with a significantly reduced net deficit of $443.6 million, a noticeable improvement from the $639.1 million projected in the budget laid out in June 2023. According to the Ministry of Finance’s Fiscal Performance report for FY2023-2024, this deficit is also substantially lower than those recorded in the previous two fiscal years.

In terms of overall financial performance, the government reported total revenues amounting to $3.6 billion, while expenditures totaled $4 billion. Notably, government debt at the end of July 2024 stood at $10.3 billion, a decrease from 82.0 percent of GDP in July 2023 and 90.6 percent in July 2022.

The ministry highlighted that total revenue for FY2023-2024 exceeded revised forecasts by $68.3 million, or 1.9 percent, thanks to higher-than-expected collection rates from both tax and non-tax revenues. Compared to the financial year 2022-2023, total revenue collection surged by $896.1 million, marking a 32.6 percent increase.

Specifically, tax revenue hit $3.1 billion for FY2023-2024, surpassing revised estimates by $60.9 million or 2.0 percent, and exhibiting a remarkable rise of $811.8 million or 35.5 percent compared to the previous fiscal year. This robust performance can be attributed to changes in key tax areas, including VAT, corporate tax, departure tax, fiscal contributions, and customs duties, alongside strong performance in vital sectors such as tourism and natural resources.

Overall, the fiscal report portrays a more optimistic financial outlook for the government, indicating effective financial management and the positive impact of economic growth in various sectors. The declining deficit and increasing revenue collections could pave the way for improved public services and infrastructure in the upcoming fiscal year.


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